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Efficiency Initiative to Sustain GfK's Organic Growth
According to preliminary figures, GfK has achieved organic revenue growth of 5.5% to EUR 1,220m for the financial year 2008. The firm has also implemented a new efficiency programme which it says should save EUR 30m between now and 2012.
Taking into account acquisitions and currency effects, sales for the period increased by a total of 5.0% to EUR 1,200m, and adjusted operating income currently stands at EUR 159m. Margin increased from 11.8% to 13.0% for the first nine months of 2008.
All three GfK sectors increased their organic sales growth in 2008 compared with the same period in the prior year. The Retail and Technology sector achieved organic sales growth of 14.0% to surpass the EUR 300m mark for the first time, and significantly improved its margin to 27.1% from 25.8% in 2007.
The Custom Research and Media sectors contributed 2.4% and 7.3% respectively to organic sales growth.
Good organic sales growth was experienced in all regions with the exception of North America. Once again, 'particularly dynamic' growth was recorded in Central and Eastern Europe, Latin America and Asia and the Pacific, where growth rates reached double digits.
However, at the end of January 2009, the order book covered a total of 30.2% of expected annual sales (prior year: 33.7%).
In order to achieve sustainable income in all its sectors, GfK is implementing an efficiency program called BISS (Business IT Services and Streamline Services create Synergies) across the entire group.
The firm says this will make a major contribution to the long term future competitiveness of GfK, and should save approximately EUR 30m between now and 2012.
'Against a background of the current economic environment and the ongoing deterioration in the framework conditions, the GfK Group is aiming for organic sales growth in 2009 and will be introducing measures to sustain the margin at the prior year's level,' the company said in a statement. 'The BISS initiative will provide essential support for this goal.'
Web site: www.gfk.com .
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